Principles of Marketing Group 3 BM-D

1.3 Social:

An individual’s buying decision depends mainly on the cultural and social factors prevalent in
society. For example, Indians are accustomed to a hot cup of tea daily, of which milk is a critical
ingredient, promoting the use of milk all across the country. India's demographics show an
increase in the percentage of youth in the country. With more and more youngsters becoming
health-conscious, Amul has grabbed this opportunity and has come up with skimmed low-fat milk
and milk powder, which is preferred by such people. Even in pandemic times, Amul has seen a
chance in the market and has come up with Immune boosting products that have been widely
accepted by society.

In March, the Ministry of Information and Broadcasting decided to re-telecast TV serials'

Mahabharat' and 'Ramayan' on Doordarshan, which invoked nostalgia among people. Amul
grabbed the opportunity by associating with these series and telecasting Amul advertisements of
yesteryears, evoking Amul’s memories from its younger days.

Amul converted this global pandemic crisis into an opportunity and produced 35 lakh litres of
milk per day. This extra milk came due to the private industry, stopping collecting milk from the
farmers. In this situation, Amul continued paying high for every drop of milk poured by the farmer
and generated a remuneration of INR 8 billion cumulatively for 36 lakh families of rural India,
the primary livelihood source. It strengthened the trust that farmers had in tAmul’sstructure and
this enlarged image of Amul as the most reliable dairy brand among the Indian customers.

During the lockdown, Amul had to find out creative ways to reach out to the people who could
not come out of their house. Amul changed its last-mile supply chain strategy overnight and
partnered with Zomato, Swiggy, Dominos, who would deliver the Amul products to customer's
homes with all safety measures. Amul started taking orders from the Residential Welfare
Association and offered their products directly to the housing colony.

As hotels, cafes, sweet shops, tea stalls were closed; Amul faced a steep decline in the demand
for the products. To compensate for this loss, Amul redesigned its marketing strategy by educating
people to use their products and try out restaurant-style food at home. It encouraged people to try
out healthy and tasty dishes made with Amul products at home, which enhanced the in-home
consumption of Amul's products. Amul invited India’s chefs who were unoccupied during the
lockdown to host the special live event on their Facebook page to show their recipes made of
Amul products to the viewers. It enhanced the in-home demand of the products and also helped
Amul to strengthen its bonding with the customers.

1.4 Technological:
As Amul enters into a world increasingly driven by technology, it automates and optimises its
technological systems in various verticals, keeping up with other international players with
experience in more extensive and more developed markets.

The increased security in the online segment is essential because Amul is increasing its digital
presence and marketing and has not taken the required measures to ensure its identity. Expanding
the online moat against malicious players is one of Amul’s first steps towards ensuring its
Principles of Marketing Group 3 BM-D

dominance in the world of digital marketing, characterised by online commerce and

advertisements over social media that can target users based on demographic factors.

The milk industry is increasingly adopting the internet of things (IoT) technologies in its process.
This form of adoption is especially true in the area of supply chain management. Consumers are
getting increasingly aware of the origin of the things they consume. They would like to know the
breed of the animal from where their milk or related food originates from and the region or
farmer’s details that helped raise the animal.

IoT devices are now used for real-time health tracking of livestock to intervene before health
problems, and other issues go out of hand. These devices link to the robotic milking machines
that can start the milking process for cows and other milch animals at any time of the day when
the animal's vital statistics are at the best levels.

Another way that Amul has upgraded its systems is by digitizing the farmers’ livestock’s artificial
insemination process that has registered with Amul. These farmers can now use a digital
application to appear onto Amul's online database, which helps keep track of the cattle. When it
is time for the Artificial Insemination, a technician will visit the farmer and then carry out the
process. That gets recorded within the app in real-time.

Amul is then able to keep a remote track of the entire birthing process of the cattle. Once the new
calf is born, they can then aid in the deworming and vaccination of the newborn and ensure that
it is in line with Amul’s high standards for all animals. Using technology in this manner, Amul
has removed almost all wastage and redundancy in bringing in the next generation of animals that
are its main inventory.
These technologies help Amul, as the entire milk industry aligns with a data-driven model
supported and optimized by technology, so minimize wastage at every stage of the process.